On Friday dropped below $30,000 while starting the day from around $32,600 per coin. As per the charts, Bitcoin went down to be traded for as low as $29,284. However, it did regain its footing and was standing back on around $31,150 the very same day.
The slump occurred only two weeks after it set records for any single asset to be traded above $41,000. The slumps have fired up new questions about the sustainability of Bitcoin and other cryptocurrencies.
Bitcoin dropped around 7.5 percent during the trading hours in the Asian market. Market analysts have warned that if Bitcoin went below the mark of $30,000 then chances are it may drop rapidly. Since the advent of the corona pandemic, these last two weeks have been the worst for the cryptocurrency leader.
Since March 2020, Bitcoin has only seen surges and even those of exponential level. But now that twilight has started to fade away as Bitcoin seems to be in hot waters.
Popular market analyst CriagErlam said that he believed any further slump would cause a huge damage to Bitcoin. He said that any further seen by Bitcoin will be felt all over the Crypto market. Erlam added that Bitcoin reaching price point of $20,000 any time soon would not surprise him.
Bitcoin, whose market cap was not long ago was said to have exceeded $1 Triliondollars has dropped now significantly. Bitcoin’s market cap now stands just above $590 billion.
Bitcoin really did saw some price rocketing after its twelfth anniversary. Reaching around $32,000 on its birthday and then surge above close to $41,900 in manner of days was mesmerizing. But the sudden drops it is facing right don’t feel short of magic true. Big investment institutions like JPMorgan chase made claims that Bitcoin would soon be surging above $46,000. They also predicted that by the last quarter of next year it would be around $146,000 per coin.
Some proponents of Bitcoin argue that Bitcoin’s becoming more mainstream and will play role in hedging risks against dollar. They claim that it is less prone to the weaknesses of fiat currencies and inflation. Others say that Bitcoin was like any other bubble-like there are in the capital market.
There have been only speculations and conjectures to who and what caused the rally in Bitcoin. No one element can be made responsible for that. The billionaire joining the crypto trade, institutions rising interest, return of retail sellers, etc. all have been responsible for that.
Jehan Chu of Kenetic Capital Hong Kong said that it is all part of “natural correction” he stated that all these slumps are because of profit-taking but it will not have any long-term affects. As he believed that nothing would stop Bitcoin from crossing $100,000 mark this year on Wall Street’s DNA.
One analyst said that’s how capital trade had been for ages for every new attractive asset. He added that popularity causes bubbles to form and the bubbles burst and that is how the trading works.